The price of a property isn't what it costs to buy it. On top of the price come taxes, the escribano's fees, the agency fee if you buy through an agency, and certificate and registration costs. Once you own it, there are recurring costs too.

Knowing them before you make an offer changes your budget. Here are the main ones — what can be stated with a source, and what depends on each deal.

1. Property Transfer Tax (ITP)

This is the tax on property sales in Uruguay. In a standard sale:

• the buyer pays 2%;
• the seller pays 2%.

What surprises many foreign buyers: the 2% isn't calculated on the price you pay, but on the property's cadastral value (valor catastral), a fiscal value set by the National Cadastre that doesn't necessarily match the sale price.

The escribano withholds the tax at the deed, before registering the purchase.

Do this: before making an offer, ask the escribano to calculate the ITP using that property's cadastral value.

2. The escribano's fees

The escribano handling your purchase reviews title, requests certificates, drafts and executes the deed and registers the purchase. The buyer usually pays their fees and related costs.

There's no single percentage that applies to every deal, so we won't give you one. Ask for a written quote covering fees, certificates, stamps and registration for that specific transaction.

3. The agency fee

If you buy through a real estate agency, there's a fee. A widely used market reference in Uruguay is 3% of the price plus VAT. With Uruguay's standard VAT rate of 22%, that's 3.66%.

Two points:

• it's a market reference, not a tax or a legally fixed rate;
• agree early on who pays what, and when.

4. Certificates, registration and other closing costs

The deed requires certificates and registration with the Property Registry, and these have costs that vary by deal. They belong in the escribano's written quote.

5. The cost of owning the property

Once it's yours, expect recurring costs:

• Contribución Inmobiliaria (property tax); - Impuesto de Enseñanza Primaria (primary education tax); - local service charges;
• building fees (gastos comunes) in apartments; - utilities and maintenance.

Building fees vary widely depending on what they cover — concierge, central heating, amenities, upkeep. Higher fees don't always mean a pricier building, but they're a monthly cost to include in your numbers.

Questions to ask before buying an apartment:

• How much are the building fees and what do they include?
• Does the building have a reserve fund?
• Are there approved or planned works that owners will pay for?
• Are taxes and fees up to date?

6. If you're buying to rent out

Add empty months, maintenance and repairs, property management if you won't do it yourself, and any taxes on rental income. The tax side depends on whether you're a tax resident in Uruguay and how the investment is structured. An accountant should define it.

How to structure your budget